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Today’s issue of Travel Markets Insider is delighted to share some major stories from the beauty sector.
Leading off this issue, however, are more reports showing the continued recovery of air traffic and travel. On the eve of the U.S. Thanksgiving holiday, airports across the country are forecasting record numbers of travelers.
BY THE NUMBERS
U.S. The National Travel and Tourism Office (NTTO) reports that U.S.-International air traffic passenger enplanements have now reached 87% of pre-pandemic October 2019 volume, up from 85% in September. Air travel to/from the United States and Europe continued to strengthen, totaling 5.829 million passengers, up 217% over October 2021, and down only (-14.9%) from October 2019. See more traffic reports between the U.S. and other parts of the world on page 1.
Europe
According to the latest ETRC Business Performance Index, the European Travel Retail sector continued to be heavily impacted as a result of the COVID-19 pandemic in the first half of 2022, but following a static performance in the first quarter of this year, Q2 2022 has shown a significant rate of recovery, with the Q2 value sales deficit falling to -17% vs. Q2 2019, following a deficit of -35% in Q1 2022.
See what the ETRC says is underpinning the recovery, and what it sees ahead in the near future, on page 1.
SPOTLIGHT ON BEAUTY
Lancôme’s La Vie Est Belle is celebrating its 10th anniversary and L’Oréal Travel Retail Americas, is paying tribute with activations in Los Angeles with DFS, and in Sao Paulo, Rio de Janeiro, Buenos Aires, Mexico City, Santiago de Chile, Montevideo and Lima with Dufry. Page 2.
Valentino Beauty. L’Oréal Travel Retail Asia Pacific has inaugurated a new 2-AXIS counter for Valentino Beauty in the heart of Macau’s luxury shopping district at The Venetian Macao, through an exclusive partnership with Duty Free Americas (DFA). Page 2.
Estée Lauder to acquire the Tom Ford brand in $2.8B deal. In one of the major developments in the beauty and fashion worlds, the news last week that Estée Lauder Companies Inc. has agreed to acquire the Tom Ford brand has been described as a “transformational deal.” This is the first time that the global beauty leader is stepping into the fashion world although ELC and Tom Ford have been long-time, successful, partners on the beauty side of the business. Read the full story on page 3.
NPD: Prestige beauty sales in the all-important U.S. market are showing healthy growth, reported The NPD Group this month. Sales revenue totaled $6 billion in 3Q 2022, up 15% compared to the same period of 2021. This continues the trend reported by NPD for the year to date. See a breakdown by sector on page 3.
In another major development out of Asia, L’Oréal Group has partnered with Hotel Shilla and Anchor Equity Partners to launch a newly created luxury beauty brand ‘SHIHYO,’ The new brand is under the direction of Loshian, a third-party joint venture. This is the first time L’Oréal is launching a new beauty brand through a joint venture. Story on page 4
DFS. In more good news for travel retail recovery, DFS Group, celebrated the reopening of its T Galleria Beauty by DFS, Galaxy Macau store on November 18. Brand and media partners, social media influencers and VIP guests joined DFS and Galaxy Macau representatives at a special ribbon-cutting ceremony and VIP event. DFS has also recently reopened a new T Galleria in New Zealand, in Queensland. Page 4
Holiday Specials. British fragrance expert Molton Brown has launched a new collection for Christmas, Merry Berry & Mimosa. Page 4.
SUPPLY SIDE: SPIRITS
Maker’s Mark launches Wood Finishing City Series featuring The New York Edition with International Shoppes. Page 5.
Penderyn Distillery. Just in time for the World Cup, Penderyn Distillery has announced that superstar Welsh footballer Gareth Bale has become a shareholder of the business and will be a global ambassador for Penderyn’s spirit brands. Bale, who plays for Los Angeles FC in the U.S., is at the World Cup as the key player in the Welsh football team, is now partnering with the internationally acclaimed Welsh business. See full story on page 5.
